Sg2009wc:finance

From She's Geeky Wiki

Topic: Personal Finance

Session 3-N Bay Area Jan 2009

Convener: Ei-Nyung Choi

Note Takers: Virginie de Bel air

Attendees:

• Clover Huang, Vanlelt, Yi & James LLP,
• Laver Forrest,
• Stacey Banles,
• Leya Babonin, Astreya Partners,
• Jenny Greenwood,

Personal Finance

Woman seems not interested in Personal Finance, almost taboo Gender dividerBut everyone should have an equal interest because after all you earn this money and you spend it

Saving: Goal not to die rich but to be able to accomplish your life goals (travel, house,....)

2 principles: spend less than you earn, do something smart with the difference

Start small, make it something that you can sustain

It becomes quickly addictive, interest = free money

Know your credit score, bad credit history stays longer than good credit, you can get free credit report 3 times a year

Step 1: keep a budget write everything you spend down for a week for instance so that it connects you with reality "fun money" you could withdraw and put what you want to spend on money for fun (eating out, ...) in an enveloppe each month and force yourself to stay within that budget

Step 2: pay yourself first meaning put money in saving automatically as you get your pay check or put remainder money in saving at the end of the month if you're disciplined

Safety Net: you should have a safety net of accessible money that would sustain you for 6 months

It should be in a separate saving account than your saving for life goal

Investing: Mutual Fund versus making investment choice in particular stocks yourself: depend on your knowledge -> rule is if you invest on your own, stick with what you know.

Otherwise, don't cherry pick and choose a diversified portfolio

Rule of thumb: you should not invest money that you would need in the next 4 years. Start investing once you have a safety net in place.

Importance of thinking early at IRA and 401K

Possible to have 401K as self-emplyed: 401KSE

Look for investment and credit card with no fee

Book, blogs, sites, podcast on personal finance:

• "Rich Dad, Poor Dad"
• "How to beat the street"
• moneycenter.yoddle.com -> centralized view of your money
• mint.com -> centralized view of your money
• iwillteachyoutoberich.com -> practical advice, tips
• getrichslowly.org
• jsmineset.com
• usglobal.com
• planet money podcast from NPR